Company Number: 14464040

Analysis Date: 2025-07-20 15:27 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency concerns with net liabilities increasing from £958 at the end of 2023 to £3,696 by November 2024. The presence of long-term creditors (£4,041) substantially exceeding current assets (£291) further indicates financial distress. The increasing negative equity and net liabilities underline a high risk that the company may struggle to meet its obligations.

2. Key Concerns:

• Negative net assets and increasing net liabilities, indicating erosion of shareholder funds and potential insolvency risk.
• Current liabilities and long-term creditors vastly exceed current assets, suggesting liquidity issues and potential cash flow constraints.
• Small scale of operations (micro-entity with only two employees) and minimal fixed assets limit operational stability and ability to absorb financial shocks.

3. Positive Indicators:

• Accounts and confirmation statements are up to date with no overdue filings, indicating compliance with regulatory requirements.
• Directors and significant controllers are identified with no public disqualification records, supporting governance stability.
• The company has been operational since late 2022, suggesting some continuity despite financial challenges.

4. Due Diligence Notes:

• Investigate the nature and terms of the £4,041 long-term creditors to assess repayment obligations and restructuring possibilities.
• Review cash flow statements and bank balances to understand liquidity position beyond balance sheet snapshots.
• Assess business plan viability and revenue generation prospects given the micro-entity status and limited asset base.
• Examine any contingent liabilities or off-balance sheet obligations that may exacerbate financial strain.
• Confirm the reasons for the resignation of one director in early 2025 and any impact on company management.